Aug 17, 2015
Urban Outfitters profit beats estimates
Aug 17, 2015
Apparel retailer Urban Outfitters Inc reported a better-than-expected quarterly profit, helped by strong demand for its Free People line of bohemian and vintage clothing and recovering sales at its flagship brand.
The company's shares were up 5.5 percent in extended trading on Monday.
Trendy, fashionable clothing, tight inventory controls and investments in e-commerce have helped Urban Outfitters return its namesake brand to growth in the face of stiff competition and a retail environment where promotions and discounts are the norm.
The growing popularity of bohemian and vintage clothing with a focus on music, culture and travel is also helping sales at its full-price Free People brand, which offers women's apparel.
Sales at the Urban Outfitters division rose 4 percent in the second quarter ended July 31, while Free People registered 20 percent growth.
Same-store sales increased 14 percent at Free People, higher than the 13.4 percent rise analysts on average were expecting, according to research firm Consensus Metrix.
Comparable sales rose 2 percent at Anthropologie and 4 percent at Urban Outfitters.
Total comparable sales rose 4 percent, less than the 4.3 percent rise analysts had expected. Revenue rose 7 percent to $867.5 million.
Second-quarter net income fell slightly to $66.8 million from $67.5 million a year earlier. On a per share basis, net income rose to 52 cents from 49 cents, due to share buybacks. Analysts on average had expected earnings of 49 cents, according to Thomson Reuters I/B/E/S.
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